Comments: Gold prices retreat, but significant upside remains

Gold has retreated in recent days as investors flock to cash safe-havens like the Swiss Franc. However, Nikos Tzabouras, Senior Market Analyst at Tradu.com explains that the path of least resistance for the precious metal remains upwards as uncertainty looks likely to continue and the People’s Bank of China pushes ahead with its buying spree.

Nikos Tzabouras, Senior Market Analyst at Tradu.com, commented:

“Gold retreats as investors turn to cash and other safe havens like the Swiss Franc and the Japanese Yen amid market turmoil, creating a risk of deeper corrections. However, gold’s appeal as a safe haven is likely to endure, with the path of least resistance pointing towards new all-time highs. Ongoing trade uncertainty, rising global recession risks, a weak US dollar, and continued buying by the People’s Bank of China all underpin demand and support higher prices.”